Increase withholding

Forum|Forum|4 years ago
July 27, 2022
4 replies
34 views

What is an easy way to increase amount witheld? Doing the multiple jobs worksheet is both an eye strain and headache, and I wound up not have enough withheld and paying a penalty anyway.

James-B

Level 4

Hi @sulingman

This is a great question! In section 4 of the new W-4 form you will find the field you need. It is 4(c) and labeled “Extra withholding”. The withholding from your pay will be increased by whatever amount you place in here on a pay period basis. So, if you want them to withhold an extra $200 a month and you are paid twice a month, then you should list $100 on this line.

It’s true that completing the W-4 can sometimes be seen as an art! Good luck and please reach out anytime if you have other questions.

Have a great day!

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Faith C

Level 5

Thank you for asking. TurboTax also provides a great tool, W-4 Calculator 202, which will help you to find out how much withhold you should have based on the information you enter. https://turbotax.intuit.com/tax-tools/calculators/w4/

After the results from Withholding Estimator, you can decide if you need to change your tax withholding and here is the answer from IRS: https://www.irs.gov/individuals/employees/tax-withholding

"To change your tax withholding, use the results from the Withholding Estimator to determine if you should:

Complete a new Form W-4, Employee’s Withholding Allowance Certificate, and submit it to your employer.
Complete a new Form W-4P, Withholding Certificate for Pension or Annuity Payments, and submit it to your payer
Make an additional or estimated tax payment to the IRS before the end of the year."

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sulingmanAuthor

Level 2

Hmm I don't think I'd have asked that question if coming up with the answers required by that calculator wasn't both an eye strain and a headache. I'm sure there are only a couple numbers I need to know, but those are contained within 100s of pages of gobbledygook. I guess that keeps folks like you employed. I'm trying to find the salient info from last years' tax return; reminds me how I write that check annually, with penalties, because how much do headaches cost, truly?

Faith C

Level 5

Hi sulingman,

Thank you for expressing your concern and we totally understand how you feel with so many tax regulations. The calculator was a tool to assist you with the calculation on how much estimated tax you will need to pay. Yes, to make it easier, you may make an estimated tax payment through IRS and here is the link.

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

https://www.irs.gov/payments/eftps-the-electronic-federal-tax-payment-system

https://www.irs.gov/payments

When To Pay Estimated Taxes

For estimated tax purposes, the year is divided into four payment periods. You may send estimated tax payments with Form 1040-ES by mail, or you can pay online, by phone or from your mobile device using the IRS2Go app. Visit IRS.gov/payments to view all the options. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax.

Using the Electronic Federal Tax Payment System (EFTPS) is the easiest way for individuals as well as businesses to pay federal taxes. Make ALL of your federal tax payments including federal tax deposits (FTDs), installment agreement and estimated tax payments using EFTPS. If it’s easier to pay your estimated taxes weekly, bi-weekly, monthly, etc. you can, as long as you’ve paid enough in by the end of the quarter. Using EFTPS, you can access a history of your payments, so you know how much and when you made your estimated tax payments.

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